Impellam Share Discussion Threads

[henryatkin] 16/2/2011 11:02

If that £3m were added to the operating profit it would raise margins to over 3%. Personally I'd like to see 4-5% but we are not that far behind SThree - would be nice to have their P/E. Its also nice that after todays rise the threads not attracting loads of idiot rampers.

[mikeja] 16/2/2011 07:21

Finance charges will be fairly minimal this year saving £3m or so,I am looking for eps of 55-60p.Hopefully a bullish outlook to come at AGM.

[jakleeds] 16/2/2011 07:11

A fantastic set of results, pe of around 4.5. Let the rerating begin.

Impellam Group plc

REPORT FOR THE 52 WEEKS ENDED 31 DECEMBER 2010

PRELIMINARY RESULTS (UNAUDITED)

Highlights

-- Turnover increased 6.6% to GBP1,113.6 million (2009: GBP1,044.2 million)

-- Fees from permanent placements increased 18.4% to GBP18.7 million (2009: GBP15.8 million)

-- Conversion of gross profit into operating profit improved to 16.8% (2009: 6.0%)

-- Operating profit GBP30.7 million (2009: GBP10.0 million)

-- Cash generation from operating activities increased to GBP57.5 million (2009: GBP1.3 million)

-- Net debt decreased by GBP51.8 million to GBP17.8 million as at 31 December 2010

-- Basic earnings per share of 46.7p (2009: 23.9p)

Cheryl Jones, Chairman, commented:

"I am extremely pleased to announce that Impellam has produced a strong set of results during the first full year of trading under the Company's defined strategic initiatives.

Key components of the Group's strategic focus for 2010 included end-to-end operating efficiency initiatives, further brand rationalisation, controlled growth strategies and service innovation development for each selected market. As these initiatives developed, their alignment to the overall productivity and efficiency of the business resulted in improved profit and effective cash flow generation.

During 2010, the Group's turnover increased 6.6% to GBP1.1 billion, principally driven through the Healthcare Staffing and UK Commercial Staffing sectors.

Importantly, conversion of gross profit into operating profit improved over ten basis-points to 16.8% in 2010 from 6.0% in 2009. This improvement reflects the Group's planned approach towards efficiency measures and revenue quality initiatives across all segments.

Operating profit was GBP30.7 million in 2010, up from GBP10.0 million in 2009, with all business segments contributing to this performance.

The overall net cash generated from the Group's operations in 2010 was GBP57.5 million, which allowed net debt to be reduced to GBP17.8 million at the year-end.

I am also pleased to report that Impellam has recently extended its primary commercial banking facility through to February 2013, and the Company will repay, in full, its final obligations under the GBP20.0 million guaranteed secured loan notes on the due date in May 2011.

Impellam is now well-positioned to take advantage of market opportunities and improving economic conditions."

Business Segment Results:

- Healthcare Staffing: Turnover increased 13.1% to GBP202.4 million and gross profit increased by 13.5% to GBP32.0 million. Operating profit increased to GBP11.6 million.

- UK Staffing - Commercial: Turnover increased 11.3% to GBP472.9 million and gross profit increased by 9.5% to GBP73.6 million. Operating profit increased to GBP14.9 million.

- UK Staffing - Professional & Technical: Turnover declined 2.9% to GBP168.1 million and gross profit declined 1.4% to GBP28.5 million. Operating profit increased to GBP4.3 million.

- US Staffing: Turnover declined 0.6%* to GBP164.9 million and gross profit increased by 4.1%* to GBP34.9 million. Operating profit increased to GBP4.0 million.

- Support Services: Turnover increased 2.0% to GBP105.3 million and gross profit increased 37.5% to GBP13.2 million. Operating profit was GBP2.4 million compared to a loss in 2009.

The Group generated GBP57.5 million of cash from operating activities in the year (2009: GBP1.3 million).

Net debt reduced by GBP51.8 million to GBP17.8 million as at 31 December 2010 (31 December 2009: GBP69.6 million). In addition, the Group has outstanding letters of credit drawn against its US borrowing facilities amounting to GBP3.4 million (31 December 2009: GBP4.9 million).

[horace678] 03/2/2011 22:22

Yes, this guy seems to be doing quite well, but he only stays in for a short period of time - the rest of us are medium to long term.

[doctorjohnson] 03/2/2011 21:58

www.ShareSpeculator.com

[jakleeds] 03/2/2011 20:05

* Manpower, the US-based staffing agency, says that there is 'exceptional' demand for temporary workers in European and US companies amid uncertainty in the economy.

[purav] 03/2/2011 12:22

markets they operate in are still tough, especially healthcare...

[horace678] 03/2/2011 00:20

Yes, a while ago on a forum on another site I suggested a final price of £3.50, but perhaps that is too cheap a prediction. This is how Ashcroft has historically made his money - buying poorly run companies on the cheap (in this case Corporate Services Group), turning them round and then selling them off at a profit.

[jakleeds] 02/2/2011 22:58

Yes but it's still far too cheap - they turn over more than a billion, are having a massive efficiency drive so the slightest bit of improvement will make a huge difference to the bottom line.

[horace678] 02/2/2011 22:55

Yes, and 2 years ago the price was less than 30p...

[cfro] 02/2/2011 18:08

Yes indeed jakleeds, nice uplift today. PE still only 5, but possibly even lower, so current share price looks rather silly imo.

[jakleeds] 02/2/2011 13:22

She's gonna blow...

[jakleeds] 02/2/2011 09:33

Beginning to move now in anticipation of cracking results on the 14th.

[doctorjohnson] 19/1/2011 17:43

Looks like the ShareSpeculator has bought some. I quite like this guys website www.sharespeculator.com

[jakleeds] 19/1/2011 12:11

No worries Saucepan, another nice little tick up.

[saucepan] 19/1/2011 12:05

Looking great; thanks again Jakleeds for drawing to attention.

[jakleeds] 19/1/2011 10:15

Through 2 quid and about to break out to new highs, after that it's clear blue sky :-)

[jakleeds] 18/1/2011 11:59

Welcome aboard Saucepan, looking ready for a surge here.

[saucepan] 18/1/2011 08:18

Hi Folks, joined you long today - thanks to a heads up from Jakleeds on the ZULU thread.

[jakleeds] 16/1/2011 20:12

Results in Feb so I suspect we'll see some interest here over the next few weeks. Looks far too cheap.

[hjfe] 05/12/2010 12:36

Mattjos - take a look at Restore plc (RST) - another Ashcroft holding that has recently turned the corner. Could be the next Impellam - both have Andrew Wilson on the Board.

[wjccghcc] 25/11/2010 11:02

I suppose the question here is what discount should there be for the Ashcroft factor?

[mikeja] 25/11/2010 10:35

Incidentally CR I think eps should be around 48p this yr which gives a pe of 4.2